EverestIMS Technologies Limited capitalised Rs 9.03 crore of software

EverestIMS capitalised Rs 9.03 crore of software additions in FY26 rather than recognising qualifying development costs immediately as expenses. Net intangible assets rose to Rs 14.31 crore at March 31, 2026 from Rs 10.36 crore a year earlier, while amortisation on intangible assets increased to Rs 5.08 crore.

How much software spending did EverestIMS capitalise in FY26?

EverestIMS recorded Rs 9.03 crore of additions to its software category during FY26, compared with Rs 6.89 crore for in-house software in FY25 and Rs 5.17 crore in FY24. The FY26 addition was the largest across the three reported years and represented almost all of the Rs 9.49 crore spent on property, plant, equipment and intangible assets in the FY26 investing cash-flow statement. Property, plant and equipment additions accounted for the remaining Rs 46.34 lakh.

The FY26 fixed-asset schedule labels the category receiving the additions as “Software Income”, while the FY25 and FY24 schedules use “Software Inhouse”. The gross block for the FY26 software category increased to Rs 26.54 crore at March 31, 2026 from Rs 17.51 crore at March 31, 2025. EverestIMS reported no deductions from this category in FY26, compared with Rs 20.31 lakh of deductions from in-house software in FY25.

What conditions allow EverestIMS to capitalise software development costs?

EverestIMS expenses proprietary in-house software development costs until marketing feasibility is established, according to its accounting policy. Costs incurred after marketing feasibility can be capitalised only when EverestIMS intends and is able to complete the software, expects future economic benefits, has adequate resources to complete it and can accurately measure the expenditure.

This policy distinguishes development expenditure recognised in the period incurred from qualifying expenditure recorded as an intangible asset. Capitalised costs must be directly attributable to software development or allocated on a reasonable and consistent basis. The reported Rs 9.03 crore FY26 addition therefore depends on marketing feasibility and the stated completion, benefit, resource and measurement conditions being met, rather than on cash expenditure alone.

EverestIMS also capitalises bought-out computer software, but its balance was small relative to the internally developed software category. Net bought-out software was Rs 5,000 at March 31, 2026, compared with Rs 20,000 at March 31, 2025 and Rs 54,000 at March 31, 2024. The Rs 14.31 crore total net intangible-asset balance at March 31, 2026 was consequently almost entirely represented by the reported in-house software category.

How does EverestIMS software capitalisation affect earnings?

EverestIMS recognises the cost of qualifying in-house software over time through amortisation rather than recording the full qualifying cost at once. Amortisation on intangible assets was Rs 5.08 crore in FY26, up from Rs 3.17 crore in FY25 and Rs 2.05 crore in FY24. The increase followed the expansion in the gross in-house software block from Rs 10.82 crore at March 31, 2024 to Rs 26.54 crore at March 31, 2026.

The policy specifies a three-year amortisation period for both bought-out computer software and proprietary in-house software. For proprietary software, amortisation begins after the product is ready for use and is allocated systematically over the best estimate of useful life. EverestIMS says that estimate considers obsolescence, product life cycle and competitors’ actions; if expected useful life becomes shorter, the amortisation period is revised.

The income statement reported Rs 5.70 crore of total depreciation and amortisation expense in FY26, comprising Rs 62.50 lakh of depreciation on assets other than leasehold assets and Rs 5.08 crore of intangible-asset amortisation. Intangible amortisation therefore accounted for most of the FY26 charge. Profit before tax was Rs 17.64 crore in FY26, down from Rs 18.85 crore in FY25, while profit after tax was Rs 13.14 crore, down from Rs 14.08 crore.

What does the FY26 balance-sheet increase show?

EverestIMS ended FY26 with Rs 14.31 crore of net intangible assets, up Rs 3.95 crore from Rs 10.36 crore at March 31, 2025. The movement reflects Rs 9.03 crore of additions and Rs 5.08 crore of amortisation, with no FY26 deductions reported for intangible assets. Net property, plant and equipment declined to Rs 1.88 crore from Rs 2.07 crore, concentrating the overall asset movement in software.

At March 31, 2026, accumulated amortisation on intangible assets was Rs 12.28 crore against a gross intangible-asset block of Rs 26.59 crore, leaving a net carrying amount of Rs 14.31 crore. At March 31, 2025, accumulated amortisation was Rs 7.20 crore against a Rs 17.56 crore gross block, leaving Rs 10.36 crore. The comparison shows that the larger capitalised base is progressively being charged to the income statement under the three-year policy.

The cash-flow statement separately records Rs 9.49 crore of purchases of property, plant, equipment and intangible assets in FY26, compared with Rs 7.55 crore in FY25 and Rs 5.50 crore in FY24. Operating cash flow was Rs 9.20 crore in FY26, while investing cash flow was an outflow of Rs 8.76 crore, including the asset purchases. Cash and cash equivalents were Rs 2.57 crore at March 31, 2026.

Conclusion

EverestIMS carried Rs 9.03 crore of FY26 software additions on its balance sheet because its policy permits capitalisation after marketing feasibility and specified completion, benefit, resource and measurement criteria are met. The resulting net intangible balance reached Rs 14.31 crore, while the related amortisation charge rose to Rs 5.08 crore from Rs 2.05 crore over two years.

The next disclosed matter to watch is EverestIMS’s proposed small and medium enterprises initial public offering, for which the restated consolidated statements were prepared. Future results will depend in part on whether products associated with capitalised costs remain ready for use and retain their estimated useful lives; EverestIMS states that it reviews amortisation periods at each reporting date and shortens them if expected product life declines.